Ulysses Gold Project, WA Growing and developing a new high-grade Australian gold project in a Tier-1 location December 2018 Investor Luncheon Series Melbourne, Monday 10 th Sydney, Wednesday 12 th
Disclaimer Forward-Looking Statements Some statements in this report regarding estimates or future events are forward looking statements. They include indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forward looking statements include, but are not limited to, statements preceded by words such as planned, expected, projected, estimated, may, scheduled, intends, anticipates, believes, potential, could, nominal, conceptual and similar expressions. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results to differ from estimated results, and may cause the Company s actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward looking statements. These risks and uncertainties include but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical problems, the inability to obtain any additional mine licenses, permits and other regulatory approvals required in connection with mining and third party processing operations, competition for among other things, capital, acquisition of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in commodity prices and exchange rate, currency and interest fluctuations, various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand for and availability of transportation services, the ability to secure adequate financing and management s ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward looking statements will prove to be correct. This announcement has been prepared in compliance with the JORC Code (2012) and the current ASX Listing Rules. Competent Person s Statement The information in this report that relates to Exploration Results is based on information compiled by Mr. Michael Fowler who is a full-time employee of the Company, a shareholder of Genesis Minerals Limited and is a member of the Australasian Institute of Mining and Metallurgy. Mr. Fowler has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Fowler consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services and is a shareholder of Genesis Minerals Limited. Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Scoping Study Results Ulysses Gold Project The Company confirms that all the material assumptions underpinning the production target included in this report for the Ulysses Gold Project (Refer to GMD ASX Release dated 23 rd November 2018 for full Scoping Study details) continue to apply and have not materially changed. 2
A Fast-Growing WA Gold Company Focused on Tier-1 Districts Key focus: Ulysses Gold Project near Leonora Objective is to maximise the value of the project for our shareholders Strategic Asset: high-grade gold prime location scale Scoping Study confirms low cost, financially robust gold project Resource 7.1Mt @ 3.3g/t gold for 760,000oz 1 Includes High Grade Resource: 4.1Mt @ 4.7g/t gold for 628,000oz Outstanding Resource growth potential with ongoing drilling Focus on significantly expanding Resource base Excellent discovery potential at Barimaia Project, near the 6Moz Mt Magnet gold mine Strong ongoing news-flow up until Christmas and into 2019 The Genesis of a new growth story in WA gold, underpinned by high-quality emerging projects in Tier-1 jurisdictions. 1. Refer to GMD ASX Release dated 9 th October 2018 3
Key Projects: Focused on WA s Premier Gold Districts Ulysses: Emerging underground gold project Ulysses, Barimaia, Viking: Discovery potential 4
Corporate Overview Capital Structure Board and Management Share Price 3.0c Tommy McKeith Chairman Shares on Issue 1,088.6 million* Options on Issue 33 million Market Capitalisation (@ $0.030) ~A$32 million Top 50 shareholders ~55% Cash @ December 13, 2018 ~$7 million* Highly experienced Mining Executive involved at all levels from project acquisition and exploration through to funding and development Currently non-executive Director of Evolution Mining Michael Fowler Managing Director Geologist with over 28 years experience Extensive exploration, mining and corporate experience $0.060 $0.050 $0.040 Craig Bradshaw Non-executive Director Mining Engineer - CEO Adaman Resources COO for Saracen Mineral Holdings from 2013 to 2017 Experienced industry professional with over 25 years experience $0.030 Gerry Kaczmarek Non-executive Director $0.020 $0.010 CFO for Troy Resources 1998 to 2008 and 2017 to current CFO for Saracen Mineral Holdings from 2012 to 2016 Over 30 years experience in accounting, finance and company management $0.000 4/01/2016 13/05/2016 19/09/2016 27/01/2017 7/06/2017 12/10/2017 21/02/2018 3/07/2018 7/11/2018 * Pro-forma figures following completion of $5M share placement announced on 6 December 2018, scheduled for completion on 13 December. Refer ASX release, 6 December 2018. 5
Ulysses Project Summary Exceptional location: just 30km from Leonora world-class mining district High-grade, high quality JORC 2012 Mineral Resource: 7.1Mt @ 3.3g/t gold for 760,000oz open in all directions High-grade portion of resource estimated to contain: 4.1Mt @ 4.7g/t gold for 628,000 ounces Includes four high-grade shoots containing: 1.6Mt @ 6.9g/t gold for 356,000 ounces Mineral Resource increased by 137% (439,000oz Au) in 2018 at <$10/oz Aggressive drilling program continuing to further expand and upgrade the Mineral Resource to underpin a large standalone mining operation: Outstanding exploration upside currently drilling extensions Resource upgrade and in-fill drilling Scoping Study completed with Feasibility work ongoing Located on Granted Mining Lease with approved Mining Proposal for UG Mining 6
Ulysses Scoping Study Highlights financially robust and technically low-risk gold project Includes construction of ~0.8Mtpa processing facility Mineral Resources in the proposed Life-of-Mine (LOM) schedule: 3.01Mt @ 4.1g/t gold for 400,000 ounces fully-diluted Gold production of ~358,000 ounces over 4 years Annualised production of ~100,000ozpa Mining and processing rate of 0.8Mtpa to 0.9Mtpa AISC costs (LOM): A$1,000/oz to A$1,100/oz Ulysses Genesis strategy remains in place to significantly grow the Mineral Resource Ulysses West Developed over 330m Refer to GMD ASX Release dated 23 rd November 2018 for Scoping Study details 7
Ulysses A Rapidly Growing High-Grade Gold System Significant drill intercepts: 5m @ 20.9g/t gold from 281m 4.62m @ 20.3g/t gold from 166.6m 3m @ 26.9g/t gold from 182m 2m @ 40.3g/t gold from 192m 4.40m @ 15.7g/t gold from 119.0m 6.3m @ 7.8g/t gold from 170m 7m @ 7.2g/t gold from 131m 14m @ 5.9g/t gold from 120m 10m @ 6.4g/t gold from 121m 8m @ 5.2g/t gold from 109m 4.23m @ 12.9g/t gold from 347.9m 3.72m @ 12.0g/t gold from 342.7m True widths 90 to 100% of down-hole intersections Quartz Vein 1m @ 74g/t Au Refer to GMD ASX Releases dated 02 August 2018 and 25 September 2018 8
Ulysses Long Section 9
Ulysses Section 12,250E Ulysses Pit 10
Ulysses Near-Mine Exploration and Growth Potential Over 3km of strike to systematically drill test along Ulysses shear Limited drilling away from resource area Geological understanding highlights significant potential for high-grade gold High priority, high-grade gold shoot targets identified Ulysses West Pit View looking east Ulysses Pit TARGET ZONE TARGET ZONE 11
Ulysses Near-Mine Exploration and Growth Potential ~ Over 3km of strike to systematically drill test along Ulysses shear Drill program planned to test strike and depth extents Mostly shallow drilling to date Ulysses is a large gold system with a clear pathway to expand the Resource well beyond its currently defined boundaries 12
Ulysses Regional Exploration and Growth Potential Ulysses exploration potential has been overlooked for 15 years Wide-spaced aircore drilling completed in 2017 Numerous targets identified Ulysses NW Ulysses North Ulysses East Follow-up programs planned Ulysses Resource 0.76Moz Orient Well NW Detailed aerial magnetic survey completed Coronation Admiral/Butterfly 0.36Moz Refer to the ASX Announcements dated 12 April 2017 and 6 September 2017 for further details of the regional exploration results for Ulysses. Orient Well 0.16Moz 13
Ulysses Regional Exploration Orient Well NW Shallow oxide gold open pit potential +2km of untested strike systematic RC drilling required Significant potential to define Resources outside of the Ulysses Deposit Refer to the ASX Announcement dated 2 August 2018. 14
Barimaia Gold Project Overview Located in the world-class Murchison Gold District of WA 5km south-east of Ramelius Mt Magnet Gold Mine Genesis acquired 100% of Metallo Resources Pty Ltd in September 2017 Potential for large, low strip ratio, low cost porphyry-hosted gold deposits Low-risk opportunity to assess a highly prospective ground package in close proximity to a major producing gold mine Early discovery of shallow mineralisation across a significant area open in all directions Genesis focus is on defining shallow gold resources capable of being rapidly and efficiently developed 15
4km Barimaia Gold Project Project Summary Located immediately south-east of a suite of porphyry-hosted gold deposits being targeted by Ramelius current exploration: Geology and mineralisation has strong similarities (including geochemical signature being anomalous in Au-Bi-Te-Pb- W-Ag) with the nearby porphyry-hosted gold deposits Eridanus Genesis holds the right to earn an 80% interest ($1.75M expenditure) Gold processing facilities in the region provide potential low-cost pathway to production 6km Significant area to drill test 16
Barimaia Gold Project McNabs Prospects OPEN Section 6,891,800N showing Genesis RC drill holes 17BARC001 and 002 and 009. Note the change in orientation of the western (left hand side) contact between porphyry and ultramafic units. Refer to the ASX Announcements dated 20 July and 21 August 2017 and March 1 2018 for further details of the exploration results for Barimaia 17
Barimaia Gold Project Porphyry Corridor Significant mineralised trend over 2km of strike Near-surface potential Targeting porphyry ultramafic contact zones Open in all directions 18
Barimaia Gold Project In the Shadow of the Headframe Hill 50 Mt Magnet Barimaia Creek 19
Catalysts for Shareholder Growth 2018 2019 2020 Ulysses Ongoing Extensional, Exploration and Infill Drilling Dec Q1 Q2 Q3 Q4 H1 H2 Resource Growth Mineral Resource Update Feasibility Work Ongoing Barimaia Exploration Drilling Resource Estimate 20
Summary A Fast-Growing Australian Gold Company Ulysses Gold Project Objective is to maximise the value of the project for our shareholders Major resource upgrade completed Scoping Study completed confirming robust development pathway Clear opportunity for increases in cash-flow through increases in LOM resources Outstanding Resource growth opportunity High-grade shoots identified significant exploration upside Barimaia Gold Project Discovery and exploration opportunity in prime location near 6Moz Mt Magnet gold mine Repeat success of Ulysses Well placed to deliver transformational growth 21
Contact Details: U6, 1 Clive Street, West Perth WA 6005 PO Box 937, West Perth WA 6872 Phone: +61 8 9322 6178 ACN 124 772 041 / info@genesisminerals.com.au
Appendix 1 October 2018 Mineral Resource October 2018 Mineral Resource Estimate 0.75g/t Cut-off above 200mRL, 2.0g/t Below 200mRL Measured Indicated Inferred Total Type Tonnes Au Tonnes Au Tonnes Au Tonnes Au Au t g/t t g/t t g/t t g/t Ounces Oxide 6,000 2.1 143,000 1.6 146,000 1.6 295,000 1.6 15,200 Transition 6,000 3.1 364,000 1.9 234,000 1.6 604,000 1.8 34,700 Fresh 21,000 5.0 3,647,000 3.7 2,551,000 3.3 6,220,000 3.6 710,500 Total 33,000 4.1 4,154,000 3.5 2,932,000 3.0 7,119,000 3.3 760,400 October 2018 Mineral Resource Estimate 2.0g/t Global Cut-off Measured Indicated Inferred Total Type Tonnes Au Tonnes Au Tonnes Au Tonnes Au Au t g/t t g/t t g/t t g/t Ounces Oxide 4,000 2.5 26,000 2.8 22,000 2.2 51,000 2.5 4,200 Transition 5,000 3.3 114,000 3.1 20,000 2.2 138,000 3.0 13,400 Fresh 21,000 5.0 2,323,000 5.2 1,605,000 4.3 3,949,000 4.8 610,800 Total 29,000 4.4 2,463,000 5.0 1,647,000 4.3 4,139,000 4.7 628,400 October 2018 Mineral Resource Estimate High Grade Shoots Measured Indicated Inferred Total Type Tonnes Au Tonnes Au Tonnes Au Tonnes Au Au t g/t t g/t t g/t t g/t Ounces HG Shoots 21,000 5.2 1,398,000 6.4 187,000 10.8 1,606,000 6.9 356,100 Full details of the Mineral Resource estimate are provided in the Company s ASX announcement dated 9 October 2018 NB. Rounding errors may occur 23 23
Appendix 2 Scoping Study Details Decline gradient 1 in 7 Decline profile 5.2m (W) x 5.5m (H) Stope Strike Length 45m - 85m (HR 6.5) Stoping minimum mining width 1.5m Development Level spacing floor to floor Ore drive development profile 10m 4.0m(W) m x 5.0/3.0m (H) Shanty Back Stope dilution - unplanned + planned 10% + 20% (Varying from 5% - 33%) Average stope width 4m (Varying from 1.5 12m) Mining recovery 95% Rib pillars Haulage Mine Design Parameters 1:1 Ratio 45t trucks LOM Production Target with AISC TOTAL Year 1 Year 2 Year 3 Year 4 Resources Mined t 3,015,550 380,435 845,834 896,971 892,310 Grade g/t 4.13 3.76 4.56 4.59 3.42 Contained Gold ozs 400,354 46,004 124,100 132,241 98,009 Resources Milled t 3,015,550 380,435 845,834 896,971 892,310 Grade g/t 4.13 3.76 4.56 4.59 3.42 Contained Gold oz 400,354 46,004 124,100 132,241 98,009 Recovery % 89% 89% 89% 89% 89% Gold Produced ozs 356,315 40,944 110,449 117,694 87,228 AISC $/oz 1,046 1,577 1,043 938 948 The mine has been designed using a typical long hole open stope technique in a top down sequence for the Ulysses ore body. Two proposed declines are to be positioned in the hanging wall to the potential underground mine and it is anticipated that the decline will advance at a rate of +100m vertical metres per annum. Steady state annual production rate is 800,000 900,000 tonnes. One third of ore production via development. With dual declines there will be on average five active stoping areas with an average production rate of 400t per day. This will facilitate a monthly stoping rate of 50-60kt and +600kt per annum. Planned dilution has been incorporated into individual stope designs to allow for the footwall to be maintained at an overall angle of 35. It is assumed angled drilling of production rings (azi dumped) so they will be drilled at an angle such that the firing direction, which is 90 to the drilling, will throw the material down into the extraction drive and minimise material on the footwall. The total infrastructure capital costs for the project are estimated at A$84.4 million. The main capital cost is A$69.9 million for the 0.8Mtpa treatment plant. The treatment plant capital includes construction of a tailings storage facility for life of mine and a 15% contingency allowance. The mine- establishment capital cost of $14.8 million includes all mining surface infrastructure. Full details of Scoping Study are provided in the Company s ASX announcement dated 23rd November 2018 24 24